Incentives for Investment in Cold Storage Infrastructure

Introduction

The creation of cold storage chain infrastructure reduces undesirable level of wastages in perishables, leads to increase in level of processing and value addition to agricultural produces. Setting up of cold chain facilities requires high investment. Considering the importance of cold chain facilities in the country, the Government has provided for special policy incentives in this regard.

The Union Budget 2010 had provided for investment linked tax incentives for setting up and operating cold chain and warehousing facilities for agricultural produces. Under this policy, all capital expenditure, other than on land, goodwill and financial instruments is fully allowable as deduction. Further, the Ministry of Finance has also taken a decision to include cold chains and post-harvest storage facilities as infrastructure projects.

This information was given by the Minister of State for Food Processing Industries, Dr. Charan Das Mahant in a written reply in the Rajya Sabha today.

Source

Press Information Bureau, August 26, 2011